An Australian businessman is launching the first Islamic political group, the Australian Muslim Party, with supporters hoping it will win a Senate seat at next year's election.

Diaa Mohamed, from Western Sydney, announced the party on Tuesday and said the aim of the newly formed political group was to field at least one candidate in each state and territory when Australia heads to the polls in 2016.

Mr Mohamed, 34, said he was launching the party in response to critics of the religion who claim leaders were not vocal enough.

Diaa Mohamed, 34, launched the party of Tuesday, and he said the aim of the newly formed political group is to field at least one candidate in each state and territory when Australia heads to the polls in 2016

'Maybe it is because we didn't know how, or we were a bit too fragmented, so hopefully this will at least give us that opportunity,' he said, according to the ABC.

But Mr Mohamed was also forced to defend the timing of the announcement of the party, which came just days after the brutal terrorist attacks in Paris.

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'There are going to be a lot of questions raised in the coming days of the events recently, and this is the whole reason we created this party,' Mr Mohamed said.

The 34-year-old also said now was 'as good a time as any to launch', and described the group as a reaction to the growing number of anti-Islam parties slated to field candidates next year - such as Rise Up Australia, the Australian Liberty Alliance and the Party for Freedom.

It is the first Australian Muslim Party, with supporters hoping to win a Senate seat at next year's election

'I thought it'd be beneficial for both Australians and Australian Muslims that they have a party... anything to do with Muslim right now people are going to oppose, but be that as it may you still need something or someone,' he said, in a video posted by the Brisbane Times.

In the video, Mr Mohamed also said the killing of innocent people was 'strictly' against his religion.

Prior to creating the Australian Muslim Party, Mr Mohamed was behind the MyPeace program, which was aimed at improving between the religion and mainstream Australia.

But not everybody is happy about the progressive move by the businessman.

'The Australian Muslim Party! As if we needed another example of how the senate is counterproductive to modern society,' one tweeter wrote after hearing of the news.

'If this story doesn't wake apathetic Australians from their slumber, we are doomed, it has begun!' another person wrote.

One woman saw it as another step closer to Sharia law coming to Australia.

'Australian Muslim Party is Born: new party aims to contest state and federal elections. Thin edge of the wedge to Sharia law,' she said on Twitter.